A decrease in consumer wealth will
A) not change autonomous consumption and rotate the consumption function upward.
B) decrease autonomous consumption and shift the consumption function downward.
C) not change autonomous consumption and rotate the consumption function downward.
D) increase autonomous consumption and shift the consumption function upward.
B
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A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75
Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula.
Omega has a real GDP per capita of $5,000. If it has a constant 6% rate of growth, how many years will it take before Omega has a real GDP per capita of $40,000?
A. 8 B. 12 C. 36 D. 72
If each case of detergent were sold at $30, determine the amount of the shortage or surplus that would result.
Consider the market for a Procter and Gamble biodegradable detergent. Suppose that market demand is QD = 120 – 3P, and market supply is QS = –50 + 2P, where P is the price per case and Q is the quantity in thousands per week.
Quantitative easing refers to a policy action in which a central bank
A) sells government securities to directly decrease bank reserves. B) decreases interest rates directly without altering bank reserves. C) increases interest rates directly without altering bank reserves. D) buys government securities to directly increase bank reserves.